KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
KUALA LUMPUR (Dec 31): The FBM KLCI closed 1.49 points or 0.09% lower on the final trading day of the year today after investors took profit and as they evaluated China's weaker purchasing managers' index (PMI) data.
At Bursa Malaysia, the KLCI settled at 1,690.58 at 5pm for a year-to-date gain of 5.91%. Investors took profit today after the KLCI rose to its intraday high at 1,701.10 amid crude oil price gains.
At 5pm, the biggest decliners, in percentage terms, among the KLCI's 30 component stocks were Maxis Bhd and Hong Leong Financial Group Bhd while gainers were led by MISC Bhd and Sime Darby Bhd.
Maxis and Hong Leong Financial shares were down 2% and 1.59% respectively. MISC and Sime Darby Bhd gained 1.82% and 1.69% respectively.
On the KLCI, Inter-Pacific Research Sdn Bhd head of research Pong Teng Siew wrote in a note today: "If corporate earnings continue their disappointing trajectory and turn in flat for the year, our expectation (is) that the KLCI may fall to as low as 1,538 some time in 1H2019. This is still a developing scenario.
"Already, our plot of foreign funds’ net invested sums currently using Feb 2011 as a benchmark, has again swung over into deeply underweight levels. Why we fear fresh lows will be made for the KLCI is these allocations may yet get pared down to even more severely underweight levels during periods when the US economy is mired in a recession and/or a global crisis of some form unfolds."
Today, global investors took cue from China's PMI data and crude oil prices. Reuters reported that China's official PMI fell to 49.4 in December, below the critical 50-point level that separates growth from contraction, according to data released by the National Bureau of Statistics on Monday.
On crude oil markets, it was reported that prices rose about 2 percent on the final trading day of the year on Monday, mirroring gains in stock markets, but were on track for the first annual decline in three years amid lingering concerns of a persistent supply glut. It was reported that hints of progress on a possible US-China trade deal with US President Donald Trump saying he had a "very good call" with Chinese President Xi Jinping helped bolster sentiment for oil.
It was reported that Brent crude futures rose US$1.04, or about 2 percent, to US$54.25 a barrel by 0740 GMT while US West Texas Intermediate crude futures were at US$46.11 a barrel, up 78 cents, or 1.7 percent, from their last close.
Tomorrow (Jan 1, 2019), Malaysian markets will be closed for the New Year holiday. Trading resumes on Wednesday (Jan 2).
Source: The Edge
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